Provenance, Policy Wording and Fraud: Inside the 2025 Insurance Landscape

Date: 11 Dec 2025

Karen Jones

Last year’s insurance report looked at how the ultra-wealthy were adapting to a hard insurance market, with higher premiums and tighter terms across property, art and specialist risks. In 2025 the conversation has moved on from cost alone to the consequences when things go wrong, particularly in the art world.

One interesting case involved two U.S. insurers, Liberty Mutual and Great American, seeking to block a US$19.7 million claim over more than two dozen forged Jean-Michel Basquiat paintings seized by the FBI from the Orlando Museum of Art. The companies argue the works were never authentic and therefore not ‘covered property,’ raising a sharp question for the ultra-wealthy: when does a prized asset become an uninsured liability? 

The 2025 Insurance Landscape: From Premiums to Proof

This year’s contributors highlight a simple but uncomfortable theme. Offers that look too good to be true, whether to a private collector or a museum, can carry the risk of financial disaster if a work later proves to be fake, stolen or tainted by a defective title. That risk is not confined to the market. Weak internal controls and poor oversight within institutions can be exploited by staff or intermediaries, turning museums and foundations into soft targets for fraud and insurance disputes. The result is that provenance, forensic analysis and clear policy wording are no longer technicalities in the background. They are the front line of protection for owners, boards and insurers.

Alongside these art-related concerns, the update also returns to the wider insurance picture for internationally mobile clients. Travel and health cover remains shaped by geography, capacity and cost, and by how willing insurers are to find solutions that balance medical need with commercial reality.

Taken together, the insights that follow suggest a market where caution is now expressed less in headline premiums and more in the evidence demanded before insurers will underwrite a risk, and where saying no to an implausible opportunity may be the most effective form of insurance of all.

In the case of the Orlando Museum of Art, saying yes, involved years of law suits, denials, FBI confessions, death and stinging financial losses.

Against that backdrop, Jonathan M. Freiman, chair of the Art and Museum Law practice at Wiggin and Dana, says the critical question is what collectors do in the first moments after a purchase if they want to avoid being left holding an expensive forgery.

The Crucial First Hours After Buying Art

Freiman says: “An owner who finds out they’ve spent millions on a forgery is in a bad position all around. Insurers are no different than dealers or auction houses in this regard: they don’t want to pay for fakes. Whether a forged work is ‘covered property’ will depend on the specifics of the insurance policy language, but even if it’s covered, unless there’s an agreed value to the property, any recovery is likely to be quite low.”

“There are some things collectors can do to mitigate risk. If a piece costs enough, it’s worth hiring experts immediately after buying the piece to do a forensics review and a provenance review. No one wants to do that when they’ve just spent a huge sum on a piece that a reputable dealer or auction house has promised is genuine. But if you wait until you suspect it’s a forgery, it’s usually too late. If a promptly commissioned forensics or provenance review raises red flags, a collector can generally return the work to the dealer or auction house. And if they refuse to take it back, the collector has prudently learned the key information fast enough to sue before the statute of limitations runs out. Those expert reviews are also helpful on the insurance side. If a collector has a reputable forensics review and provenance review, along with a recent sale, they may be able to negotiate an agreed value for the coverage amount of the work. That way, there’s no dispute over the fair market value if a physical loss occurs. And if the policy is worded right, it would preclude an insurer from denying coverage in the event that a work is seized by law enforcement on the basis of claimed forgery. That said, no major insurer that I’m aware of offers specific forgery coverage, though Lloyd’s brokers might consider insuring very specific risks for the right price. Other options to mitigate risk include putting the work in a trust and then working with an art loan specialist to borrow against the work’s value; again, the forensics and provenance expert reports would help, this time by helping the lender become comfortable with the risk. At that point, much of the risk is shifted to the lender. The overall big picture point is that collectors can best protect themselves from the risks of forgery by acting right after they buy the piece, when they have no reason to think it’s a forgery. But once they find out it’s a forgery, if it’s too late to return it to the dealer or auction house, there’s much less they can do to protect themselves.”

Freiman’s focus is on what can be done in the crucial period immediately after a purchase. Mari-Claudia Jiménez, head of the Art and Advisory team at law firm Withers New York, takes the argument a step back and says the real protection lies in the homework done before a work is acquired.

Authenticity, Due Diligence and ‘Too Good to Be True’ Offers

Jiménez says: “The key issue here is that of authenticity. At the end of the day if a work is deemed to be a ‘fake’ then you can’t expect that an insurance company will insure it as if it were real, because then its ‘loss’ would be a windfall for the collector. It is crucial that collectors conduct the appropriate due diligence before buying a work of art to ensure that it has been authenticated by the proper experts, artists committees or foundations; is included in the comprehensive catalogue of the artists’ work; and is generally accepted by the market to be a work by the artist. In this case, the market was widely dubious of these works and in fact questioned the expertise on which the Orlando Museum of Art had accepted them for an exhibition. Therefore, it came as no surprise that insurers would deny a claim on the basis of the work’s authenticity. This is less about policy language and more about collectors doing their homework in advance of a purchase.”

From there, the debate moves from authenticity in the marketplace to the small print of insurance itself. Lauren B. Cramer, a partner and co-chair of the firm’s Art Practice at New York law firm McLaughlin & Stern, says investors need to pay as much attention to boilerplate exclusions as they do to the art on the wall.

Boilerplate Exclusions and the Hidden Risks in Fine Art Policies

Cramer says: “Savvy investors in complex assets, such as fine art, rare collectibles, or other high-value items that require specialized insurance coverage, should ensure their advisors carefully review the so-called ‘boilerplate’ language on exclusions from coverage.”

A boilerplate exclusion is a standard contract clause designed to prevent parties from relying on certain rights, claims, or information that might otherwise be available under general law. These clauses aim to limit liability and provide certainty by ensuring that only the terms written within the final, signed agreement are legally binding.

“This review is critical to determine upfront whether it’s possible to negotiate terms that provide adequate protection in the definition of ‘covered property’ and to understand the potential range of additional premiums for expanded coverage. In the absence of confidence regarding adequate insurance protection, experts should also be consulted early to assess the sufficiency of provenance documentation and identify any exposure risks related to authenticity or title.”

Cramer notes that this is not just a theoretical exercise in wording, but visible in how insurers handle major works.

“In my experience for this level, insurers usually require detailed documentation and condition reports for such high-value works, particularly artists like Basquiat. Were these paintings added casually to a policy without thorough checks, that would be unusual and could raise questions about process integrity. I would strongly recommend in a case like this that the best way to resolve doubts is through an independent forensic analysis and provenance verification by recognized experts.” What Cramer describes in contractual terms becomes far more tangible once a work is stolen, misrepresented or disputed. Marinello’s work illustrates how these issues play out in practice, from restitution claims to insurer recoveries.

Recoveries, Restitution and the Insurer as Victim

Christopher A. Marinello, CEO and founder of the Art Recovery Group, is one of the world’s foremost experts in recovering stolen, looted, and missing works of art. A lawyer for over 35 years, Chris began his legal career as a litigator and became uniquely proficient in negotiating title disputes between collectors, dealers, museums and insurance companies. He has been involved in several of the best-known restitution cases on behalf of foreign governments and heirs of Holocaust victims to recover stolen artwork and cultural property. Chris successfully recovered the first work of art, Matisse’s Femme Assise, to be restituted from the infamous Gurlitt hoard and was responsible for the recovery by the heirs of Parisian art dealer Paul Rosenberg of several Nazi-looted artworks held in museums and private collections. Marinello has been involved in the repatriation of artwork and antiquities on behalf of the Governments of Egypt, Ireland, Sweden, Syria, Iraq, Romania, Cambodia, Bolivia, Brazil, Colombia, Peru, the United States, and the Republic of Italy.

In 2013, Marinello founded Art Recovery International, a specialist practice providing due diligence, dispute resolution and art recovery services for the art market and cultural heritage sectors. Within this, Chris has overseen the development of the Art Claim Database, the most technologically advanced system in existence for the identification and recording of issues and claims attached to works of art.

“From my point of view when I recover something that is insured. I notify the insurer, so for instance we got a Chagall back, so the collector then reimburses the insurance company. Some policies say current value. Some contracts say repay the payout amount and recovery cost. This is usually agreed in advance but there is an adjustment say if they left their door unlocked or the alarm was not on, then the insurers will pay less. I look to the policy language – I examine the policy carefully to see what is to be repaid.”

“The better fine art insurance policies just say pay us back what we paid you which is great for a collector as artwork may increase in value. However, it’s totally up to the insured as to what they do, they don’t have to pay it back. They may have replaced the object if years have gone by. Then the insurance company can keep it and I will sell it.”

“On the other side of the coin, there have been cases where I have recovered something that took ten years, for instance the Chagall and over this time the Chagall committee now declared it as a fake. This is not the collector’s problem. The insurer is then stuck with a fake Chagall. So, the insurer loses out big time. A lot of people use insurance companies. People think it is not really stolen if an insurance company is behind it, so the insurance company becomes the victim.”

“A lot of art on cruise ships is fake and insured for wild sums of money for instance.” He says, “The problem is most collectors want to buy art, like buying a sofa. They don’t want to do the work. They are impetuous so they just buy things. So, they rely more on dealers. So, dealers say, yes, it’s an important piece of art and show the provenance, however the auction houses say in their T&C’s they sell it ‘as is’, which means no recourse. The big auction houses give a five-year warranty like Sotheby’s. That’s why people buy from them with warranty. However, if you don’t, it’s buyer beware.”

Marinello says, “This should all be in the insurance policy. It should say ‘if we insure this object then the insured warrants that it is a Chagall.’ Then if it is a fake the policy is void. But you could have a high-net-worth collector who says it’s up to you, insurance company, to protect me on this score, so they then have the burden of authenticating it. They can hire their own authenticator, but if they are going to do that then the premium should be higher.”

“So, this goes above and beyond the standard policy so premiums should be higher. You should consider ‘authenticity insurance’ or ‘title insurance’. What if you discover a piece was stolen by the Nazis for instance? Anything can be insured for the right price. Insurers even insured Marilyn Monroe’s legs!”

“There is a lot of room for things to go wrong but high-end policies do have this protection. Homeowners and fine art policies from companies like Chubb in the USA (they do have a branch in the UK) who have a ‘Masterpiece Policy’.”

“There is so much work to be done that proves a work is authenticated. That it has clear title. A collector could insure a painting for instance, that is a Matisse, saying here is a picture of him painting it as proof. However, it could be years later that people say it was looted from us. In this case a ‘title policy’ would cover that.”

“Because technology has improved, we now get more and better fakes. It is becoming a big problem. They are having to hire more experts. Insurers don’t just write a cheque now; they are more likely to fight.”

“I am on the recovery side, I see the claims and have said to insurers, go into your policies and fix them to modernise different problems but some of them have 50-year-old policies. They have been slow to respond to tech fakes. However, there is a younger group, IMUA: Inland Marine Underwriters Association, who are more attuned to blockchain and AI and are learning how to improve.”

“Insurance is slow to change but they have rights, and I have helped them put people in prison. There was a guy who claimed a collection was stolen but then we spotted the artwork in an online auction. It was reported to their insurance investigation unit and he got arrested. However, he did not go to prison for long which is why a lot of fraud happens. Often by the same people.

“In the case of the Louvre (Musee du Louvre) for instance those thieves have been arrested several times. Similarly with the golden toilet which was stolen under the cover of darkness just two days after it went on display at an Oxfordshire stately home.” The golden toilet was a fully functional, solid 18-carat gold toilet, an artwork called America by Maurizio Cattelan, stolen from Blenheim Palace in the UK in September 2019; it was valued at millions and weighed 98kg.

“Those thieves had been in jail several times. There is not enough conditional sentencing.” This means if they re-offend, they can be sentenced for the original crime and the new one, often resulting in harsher penalties. “Also, people just disappear. One person had their passport taken away but still managed to leave the country. Insurance companies hate to have the publicity so often they walk away. The system is frustrating.”

Against that backdrop of weak enforcement and uneven outcomes, attention also turns to the position of individuals inside institutions when wrongdoing involves staff themselves.

When Staff Are the Problem: Fraud Inside Museums and Foundations

Nicola Finnerty, a Partner in the Crime Team at Kingsley Napley, says on the topic of staff behaving fraudulently: “It depends on the insurance cover, and staff would be liable to prosecution if they have been complicit in any fraud or turned a blind eye, regardless of the processes at the museum being faulty or badly managed.”

Beyond museums and collectors, insurance frictions are also felt in the everyday experience of internationally mobile clients, where the details of cover only become clear when something goes wrong abroad.

Travel and Health Insurance for a Globally Mobile Client Base

Simon Dixon, Director, Moore Dixon Isle of Man, adds some thoughts on internationally mobile UHNW clients as the world sees a large migration of individuals to new countries like Dubai, Italy and Monaco.

“As international mobility continues to rise, travel and health insurance policies have evolved to reflect the realities of a more globally dispersed population. A common misconception among those relocating abroad is that insurance cover is uniform regardless of location. In practice, cover varies significantly depending on geography, risk profile, and policy structure.”

“Disputes about coverage often arise when someone gets sick or injured while abroad. Most reputable international health insurance plans cover medical care overseas, especially when specialised treatment is needed. Emergency care is often given locally, with further or more complex treatment managed in the insured person’s home country. Access to private treatment, benefit limits, deductibles, and co-payment requirements all depend on strict policy wording. Geographical restrictions remain critical.”

“High-risk areas may face restricted coverage or increased costs. The United States remains of particular concern to insurers due to exceptionally high healthcare costs. As an example, recently a South African national and policyholder based in the US Virgin Islands required non-emergency major surgery. Treatment in the USA would have involved a 20% co-payment by the policyholder, resulting in significant out-of-pocket expense. Rather than receiving treatment in the USA the insurance company came up with an adept solution. The insured was treated in South Africa with services that met USA standards. They did not need to make any co-payment, and all costs, including travel for the insured and companion as well as accommodation, were completely covered. And the cost? Just 55% of that in the USA.”

Conclusion: What Collectors and Institutions Must Do Next

In the art market, the contributions in this update point to a steady tightening of expectations. Collectors are now expected to arrive with robust provenance, forensic analysis where appropriate and a realistic view of what their policies will and will not do if a work is later challenged. Museums and foundations face the same demands, with the added pressure of public scrutiny and the need to show that internal controls are strong enough to withstand both error and deliberate abuse.

On the insurance side, the emphasis is shifting towards clearer definitions of covered property, closer attention to exclusions and a greater willingness to contest claims where documentation is weak. Marinello’s examples suggest that insurers are increasingly prepared to enforce their rights, even if the legal process is uneven and slow to adapt to new forms of fraud.

For internationally mobile clients, the travel and health market remains shaped by geography and cost. Insurers can still deliver sophisticated solutions, but only where policyholders understand the limits of their cover and are prepared to work within those constraints.

The common thread is not a new product or a single structural change, but a more demanding environment. Those who invest in evidence and process, and who are prepared to question offers that look unusually attractive, are the ones most likely to secure reliable protection.

Summary and Frequently Asked Questions

Why has provenance become so important in 2025?

Provenance and forensic evidence have moved to the centre of insurance decisions because insurers face rising claims involving forgeries, disputed titles and sophisticated fakes. Without clear documentation, cover may be limited or denied.

What should collectors do immediately after buying a high-value artwork?

Experts recommend commissioning independent forensic and provenance reviews straight after purchase. Early verification can allow a return to the dealer or support litigation if issues arise before limitation deadlines expire.

Why do insurers refuse claims involving fakes?

Insurers will not pay out on objects later found to be fake unless policy wording explicitly provides for it. A claim on a fake would effectively give the collector a financial gain, so authenticity is a fundamental condition of cover.

What is a boilerplate exclusion and why does it matter?

A boilerplate exclusion is a standard clause that restricts which rights or claims apply under a policy. In fine art insurance it can determine whether an artwork qualifies as “covered property” at all, making these clauses critical for high-value works.

What happens when an insured artwork is recovered?

Depending on policy wording, a collector may have to repay the insurer either the original payout or the current value. If the work has been authenticated as fake after recovery, the insurer bears the loss.

Are museums and foundations at risk too?

Yes. Institutions can be vulnerable to internal fraud, weak controls and accepting works “too good to be true”. Staff may face criminal liability if complicit in fraud or negligent in their duties.

How are global mobility and health insurance linked to this year’s trends?

Cross-border medical cases show how geographical cost differences shape coverage. Policies may direct treatment to locations that meet medical standards at lower cost, illustrating how policy wording affects outcomes as much as art insurance does.

What is the overall message for 2025?

Insurance outcomes increasingly depend on documentation, due diligence and realistic expectations. Whether dealing with art, museums or international health cover, the environment demands stronger evidence, clearer agreements and more cautious decision-making.

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